German utility company E.ON has sold its gas transmission company in Germany, Open Grid Europe, to a consortium for €3.2 billion.
The consortium consists of Macquarie European Infrastructure Fund 4, Infinity Investments, British Columbia Investment Management Corporation, and MEAG MUNICH ERGO Asset Management.
Essen-based Open Grid Europe operates Germany’s largest gas transmission system (roughly 12,000 kilometres in length) and is a key European hub for bulk gas shipments from Russia and Norway. It was formerly the gas transmission division of E.ON Ruhrgas.
To comply with EU requirements, Open Grid Europe was unbundled from its parent company in 2010 and set up as an independent transmission operator.
E.ON said the sale of Open Grid Europe brings it closer to its goal of generating roughly €15 billion through divestments by the end of 2013. The company has so far recorded divestment proceeds totalling more than €12 billion; and said it would use the money to reduce its debt and invest in growth businesses.
The transaction is expected to close in the third quarter of 2012, subject to regulatory approvals.
